Breach of Cold Storage Wallet Effectively Handled by Trade.Io

Trade.io recently managed a breach of funds, with no customer funds thankfully unaccounted for. Further steps have been taken to beef up security all around as well as a fork of the TIO Token.

Breach Details

Crypto Exchange Trade.io was notified of a transaction origination from their wallet, which held 50,000,000 tokens Trade Tokens (TIO) reserved for their liquidity pool. While shortly after, deposits and withdrawals were disabled on the exchange, other exchanges listing the token begin to notice abnormal trading occurring.

Shortly after, the external exchanges listing the TIO token experienced abnormal trading within their respective markets. Deposits and withdrawals of TIO were immediately disabled to prevent loss of customer funds, as well as to prevent hackers from getting away with the tokens.

While the team’s accounts were affected, no customer accounts were directly affected or funds lost. While further investigations are occurring, no evidence of internal actors stealing has been found.

The silver lining is that the vulnerability doesn’t seem to be a technical problem of the cold storage unit itself, and the trade.io systems remain secure and unbreached as well.

The problem was isolated to a single hardware wallet purchased directly from the manufacturer, suggesting either a vulnerability in the model or in that particular product sold to Trade.io.

Exchange KuCoin and Bancor have been working alongside the Trade.io management team in anyway that they can, assisting them in quarantining any transactions that may be associated with the malicious entity.

Trade.io Moving Forward

While the exchange has taken holistic steps to increasing security all around to make a similar incident in the future from happening, Trade has also announced a fork of the token.

The TIO ERC20 token will be forked to TIOx, or Trade Token X. Similar to TIO, the new token will also be an ERC-20 token on the Ethereum network. Further details of the fork and details of the new coin were released October 25th on their website.  

Tokens held on the exchange were automatically swapped without any intervention required from the user, with enabled deposits/withdrawals and Liquidity Pool allocations/removals enabled again by 17:00 EST on October 25th.

For those holding their tokens on MEW or another ERC-20 compatible wallet before a blockchain snapshot taken October 21st on 15:00 EST, the following instructions will allow users to see their TIOx:

  1. A) Add custom token
  2. B) Add TIOx contract address which is: 0xd947b0ceab2a8885866b9a04a06ae99de852a3d4
  3. C) Add symbol: TIOx and/or name which is Trade Token X

Other exchanges have their own unique process and their instructions can also be seen on the blog post.

Trade.io’s website can be visited here. To talk with the community and team, make sure to hop into their Telegram channel to discuss all things Trade.io related. For social media updates, make sure to follow their accounts on Twitter and Facebook, so you don’t miss a beat. To learn more about the team behind the project, make sure to check out Trade.io’s LinkedIn.

This is a sponsored article and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research.

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